November 16, 2017
The McKinley Companies announced today the acquisition of Hampton Oaks Apartments in Gainesville, Florida for Avanath Capital Management. McKinley and Avanath have partnered over the last five years in the execution of a detailed plan to acquire and manage outstanding workforce housing and LIHTC housing developments throughout Central Florida. Avanath has three active investment funds with the goal of being the preeminent investment firm in affordable multifamily housing.
“Avanath has a dynamic and results-oriented team, making the execution of our acquisition plan a smooth process” offered Harry W. Collison, Jr, CRE, FRICS. As McKinley’s Senior Vice President and Managing Director of Acquisitions and Dispositions, Harry has worked hand in glove with Avanath’s executive team to target key acquisitions throughout Central Florida. Avanath now owns seven multifamily developments in this economically diverse geography.
Hampton Oaks was built in 2004, has 162 apartment homes and contains a mix of large two and three bedroom apartments with condo grade interior finishes. Washer and dryers are included in each floorplan. This development is next door to another Avanath-owned community named Savannah Apartment Homes on SW 62nd Street. These assets are a short distance from the campuses of the University of Florida and Santa Fe College. Additionally, the major retail corridor along Archer Road and Celebration Pointe are within minutes.
“McKinley has been extremely successful in building portfolios of assets within close proximity” added David Rohlfs, Managing Director – Institutional Real Estate. “We are immediately embarking on a $1.5 million capital renovation effort focusing on the customer experience and energy efficiencies. We will rebrand Hampton Oaks as an extension of Savannah. This allows us to create terrific economies of scale. Our Gainesville-based team members are excited to have even more quality homes available for our customers to enjoy.”
McKinley and Avanath together are proud to be a major employer and owner of multifamily real estate in the Central Florida region. We are committed to the future and well-being of the region, our customers who provide us the opportunity to serve their housing needs, and our over 500 amazing Central Florida based team members who deliver high quality service each and every day.
November 8, 2017
ORLANDO, FLORIDA - The McKinley Companies announced today the closing of $57,580,000 in total long-term financings with Fannie Mae and Key Bank for Palio Apartments, consisting of 320 units located in the Universal Orlando Theme Park submarket of Orlando, Florida, and Sailpointe Apartments, consisting of 60-units located in South Pasadena, Florida, and is part of the McKinley Beach Collection.
These financings are part of a larger strategic effort to secure and finalize long-term financings for the entire McKinley Owned Multifamily portfolio, an effort which is now almost complete. “Once again, we have secured extraordinary 15-year non-recourse long-term debt at superb rates with our friends at Key Bank and Fannie Mae,” offered Jim Willett, Senior Vice President & Managing Director – Finance. “We were able to create significant value in a very short period of time at these recent acquisitions, and we are thrilled with the overall outcome from all perspectives,” further offered Willett.
McKinley, has actively owned and operated Multifamily communities in the Central Florida region since 1982, and is today the largest Multifamily Owner-Operator along the Interstate-4 Corridor between Orlando and Tampa. McKinley’s Multifamily portfolio is located in Daytona Beach, Orlando, Winter Park, Gainesville, Tampa, South Tampa, Hyde Park, Clearwater, South Pasadena, Gulfport, and North Redington Beach.
October 23, 2017
Champaign, IL. - The McKinley Companies announced today the sale of three Multifamily assets located in Champaign, Illinois. These assets, along with the sale of its Office and Retail portfolio comprise a larger strategic effort to transform McKinley into a Multifamily Real Estate Platform consisting of high quality, long-term, generational Multifamily assets located in Michigan, Illinois, Indiana, Georgia and Florida.
"We carefully reviewed the entire portfolio and after a disciplined and thoughtful process, it was determined that these assets did not meet our long-term expectations and could not be characterized as truly generational assets," offered Albert M. Berriz, Managing Member, Chief Executive Officer, Board Member and Co-Owner of McKinley. "We are in the process of rotating this capital into high quality, investment grade, triple net assets in the short-term, and then working its way into Multifamily assets for the long-term as opportunities arise in our core markets," further offered Berriz.
October 9, 2017
The McKinley Companies announced today the acquisition of a Triple Net Lease Asset located in Windermere, Florida. The property is occupied on a long-term lease by Fifth Third Bank, located in close proximity to Walt Disney World, and near many of the McKinley Multifamily holdings in the Orlando Theme Park Market. The acquisition is part of McKinley’s strategic direction to exit the office and retail asset classes and become primarily a Multifamily enterprise.
“As we exit our retail and office holdings, we are moving capital to Multifamily primarily, and also into high quality investment grade triple net leases. We plan to eventually rotate all of our capital into Multifamily over time as opportunities arise, and markets shift to being more of a buyer’s market,” offered Albert M. Berriz, Managing Member, Chief Executive Officer, Board Member and Co-Owner of McKinley. “In the interim, our Triple Net Investments will only be of the highest credit quality and in conjunction with being extraordinarily well located real estate. The Windermere/Disney location was a natural for us of course, it’s a core investment market for us,” added Berriz.
McKinley was supported by Comerica Bank in this acquisition, one of its longest commercial banking relationships it has had over the years. “Comerica is family for us, they are always there for us, and they did a terrific job on execution on this deal,” further added Berriz.
October 2, 2017
The McKinley Companies announced today that Royal E. (Trey) Caswell, Senior Vice President & Managing Director - Institutional Real Estate, was awarded the prestigious Counselors of Real Estate (CRE) designation. Those designated a “Counselor of Real Estate” are prominent real estate practitioners recognized for their expertise, experience, and ethics in providing advice that influences real estate decisions.
The CRE designation is awarded to those individuals who are invited by their peers into the membership of The Counselors of Real Estate, and who accept membership by fulfilling the rigorous entry requirements of the organization, including peer, employer and client review.
“We are very proud of Trey and this honor is something that speaks volumes to the countless things he has accomplished in his professional career, and the many things he will do in the future,” offered Albert M. Berriz, Managing Member, Chief Executive Officer, Board Member and Co-Owner.
“While honored to receive this designation, I am excited for the future interaction with my fellow professionals in the advancement of the real estate industry,” Trey noted. Adding “At McKinley, we pride ourselves on our ability to tackle real estate challenges and provide successful solutions. In my role leading our Institutional Real Estate and Development efforts, these professional connections are vital.”
CRE member Harry Collison sponsored Trey for membership based on his many years of working with Trey to solve complex real estate issues. Harry stated, "Trey will be a tremendous asset to the CRE organization and its members."
September 28, 2017
The McKinley Companies announced today the acquisition of Westshore Flats - Phase 2. This community is located contiguous to the Westshore Marina District in South Tampa, Florida and within walking distance of Westshore Flats - Phase 1, a very successful redevelopment previously acquired by McKinley. The 68-unit community will undergo extensive renovations and becomes part of the McKinley Hyde Park brand, the dominant Multifamily brand located in the Hyde Park and South Tampa districts of Tampa which consists of unique and historic luxurious apartment homes.
"We are excited to add Westshore Flats Phase 2 to the Hyde Park Brand," offered Jason Schaller, Vice President and Managing Director - McKinley Hyde Park for McKinley Companies. "We have had enormous success along Westshore Boulevard and throughout South Tampa, and we are thrilled to add this community to the many choices we offer our customers every day," further added Schaller.
The McKinley Companies secured acquisition and renovation financing from Key Bank, and it plans to secure long term financing via Key Bank as well once the renovations are complete. "Key Bank once again has done an extraordinary job with acquisition and renovation financing for us on Westshore Flats - Phase 2, and they have also done an exceptional job for us all year long in 2017 with all of our long term Multifamily needs that will exceed $185 million by year-end," offered Jim Willett, SVP & Managing Director – Finance.
The McKinley Companies currently is the dominant Owner-Operator of Multifamily communities located along the Interstate-4 Corridor of Central Florida. Central Florida is the jobs and growth engine for Florida today, and McKinley has developed a market dominant position along the corridor. The platform extends from Daytona Beach to the east, to Winter Park, Orlando, and Gainesville, and then out west to Tampa, Hyde Park, South Tampa, Clearwater, Gulfport, South Pasadena and North Redington Beach.
August 22, 2017
Orlando, Florida - The McKinley Companies announced today the closing of $42 million in long-term financings with Fannie Mae originated by Key Bank on two Multifamily communities located in Orlando and Winter Park, Florida. Amalfi Universal Orlando, a 252-unit community, and Serena Winter Park, a 120-unit community, are two recent Multifamily investments McKinley acquired in 2016.
"We are thrilled to lock up long term debt on both of these assets in this continued favorable interest rate environment. We secured 15-year fixed rate term financing very early in the life of these investments given the excellent lease-up success," offered Jim Willett, McKinley's Senior Vice President and Managing Director Finance. "We have a very large pipeline of over $150 million in 15 year fixed rate debt in process with Fannie Mae and Key Bank as part of our effort to lock up all of our remaining acquisition debt, all of which will be closed by early Q4 of this year," added Willett.
McKinley and Key Bank have had an extraordinary long term relationship now spanning over 20 years. Key Bank has provided acquisition and renovation financing, bridge and gap financing, lines of credit, and long term capital markets access including CTL, CMBS, HUD, and Fannie Mae financings in support of McKinley’s efforts over the years. "We are excited to execute this next leg of locking up long term debt for our generational Multifamily platform. Over 90% of our debt is now locked up with 35-year fixed rate financing closed at historical low rates over the past 5 years, and this next tranche of 15-year fixed rate financing will be equally accretive to our balance sheet and long term asset value as well. Our very good friends at Key Bank have done a superb job with this effort, and we are thrilled with the outcome," added Willett.
Winter Park and the Southwest Orlando Theme Park market, are core investment markets for McKinley. McKinley has actively invested in Central Florida since 1982, and it is the largest Multifamily Owner/Operator along the Interstate-4 Corridor with communities located in Daytona Beach, Winter Park, Orlando, Gainesville, Hyde Park/Downtown Tampa, Clearwater, and the barrier islands of Hillsborough County including Gulfport, South Pasadena and North Redington Beach. "Our people and our leaders in Central Florida make the entire difference in everything we are doing," offered Albert M. Berriz, McKinley's CEO, Co-Owner and Managing Member, "It’s really that simple, we have extraordinary leadership that "live and work" on the ground in Central Florida with Erin Foley, Brent Boyette, Jason Schaller and Mary Williams. They have allowed us to grow and expand our efforts in this most promising market, and they are creating endless opportunities for themselves and our people. We have a very bright future along the Interstate-4 Corridor, it is without question our fastest growing market, and we have our people and our leadership to thank for that because they are absolutely extraordinary!" added Berriz.
August 17, 2017
Spark @nn Arbor USA writes an interesting post about the need for workforce housing in Ann Arbor. Click Here
August 14, 2017
Plymouth-based real estate company Hillside Investments LLC has paid $50 million for a pair of key downtown Ann Arbor buildings. To read more Click Here
August 11, 2017
The McKinley Companies is proud to announce the sale of two of its trophy assets, McKinley Towne Centre and Liberty Square located in the prestigious Tech Corridor in Downtown Ann Arbor. McKinley acquired McKinley Towne Centre in 2005 after the move-out of a major bank impacted the State Street area leaving the building essentially vacant. Shortly after in 2007, McKinley acquired the also vacant Liberty Square, after which it set forth on a major mixed use redevelopment of the existing buildings and sale of the vacant parcel located across the street. This parcel became the purpose built student housing development known as Sterling 411 Lofts, the first of many luxury student apartment developments in the area. What followed was a revitalization of the area now known as the Ann Arbor Tech Corridor which houses many of the most exciting companies in Downtown Ann Arbor today.
"Our team is very proud of its efforts over the past 12 years. We achieved our specified goals of making McKinley Towne Centre the connection of "town and gown", the hub of cultural activities in the downtown, igniting the tech corridor, and activating from a pedestrian vantage point the connection along Liberty between Main and State streets. We are also confident that the Hillside Investments team will carry on our efforts and take what we have done to a new level for the community" said Albert M. Berriz, McKinley's CEO, Co-Owner and Managing Member.
McKinley embarked on a major initiative to dispose of its retail and office assets several years ago, and this sale transaction is a part of that effort. McKinley, it's ownership, it's Board, along with itsmanagement team, developed a comprehensive plan that will eventually migrate McKinley's owned asset platform to become essentially an all Multifamily enterprise. McKinley will continue ownership of select commercial assets including its corporate campus in the Kerrytown District in Downtown Ann Arbor, it's retail holdings in Pittsfield Township, Michigan where it is the largest Multifamily owner/operator, and its trophy office holdings in Akron, Ohio. McKinley will also continue its ownership of a very high quality Triple Net portfolio located throughout Central Florida. Finally, McKinley continues its Institutional Commercial Client Services effort which manages over 5 million square feet of office and retail assets for select institutional clients including complex receiverships, workouts and long term management.
"Our team has done a superb job migrating our owned asset platform to essentially an all Multifamily enterprise. At our current growth rate, our owned portfolio will approach 20,000 units by 2020 in Florida, Michigan, Illinois, Indiana and Georgia, along with another 5,000 units we operate for a select blue chip list of long term oriented institutional partners we have done business with for many years. We have decided to focus our talent and capital on what we do best, operating Multifamily assets on an extraordinary basis, and with a high degree of customer satisfaction" added Berriz.